Fuel purchases at gas stations contribute significantly to government revenue, with a portion of each transaction allocated to state coffers. While the fuel surcharge is often the primary focus, another key factor influencing automakers' expenses is taxes, which exhibit significant variability across different US states.
As of 2026, the federal tax on gasoline remains at 18.4 cents per gallon, with state averages typically ranging around 33 cents per gallon. Notably, certain territories impose significantly lower fuel taxes, potentially offering substantial savings for individuals with daily commutes or those who frequently travel long distances.
According to Kiplinger's 2026 data, the following 10 states have the lowest state gasoline taxes.
The state tax on gasoline is currently set at 23.75 cents per gallon, resulting in a total tax burden of 42.15 cents per gallon.
New Hampshire concludes the ranking with a tax rate below the national average. Notably, the state does not impose a general state tax on sales or wages, instead relying heavily on property taxes and specific local fees.
The state tax rate is 23.03 cents per unit, resulting in a total tax payment of 41.43 cents.
A proposed tax rate of approximately 23 cents per gallon has been established for both gasoline and diesel fuel.
The total state tax amount is 23 cents, while the overall taxes paid, including other applicable taxes, amount to 41.40 cents.
Delaware has maintained a relatively stable fuel tax rate since 1995, opting instead to supplement road and bridge financing through alternative revenue streams, including tolls and vehicle registration fees.
The state tax rate is equivalent to 20.93 cents, and the total taxes paid amount to 39.33 cents.
Drivers in Louisiana are subject to the same tax rates for gasoline and diesel, but they must also factor in additional costs, including a state sales tax of 5% that may be supplemented by local taxes.
The total state tax amount is 20 cents, with a combined total of taxes paid reaching 38.40 cents.
Texas boasts one of the lowest fuel tax rates in the nation, with a state tax of 20 cents per gallon applied equally to both gasoline and diesel fuel.
The total state tax amount is 20 cents, resulting in a total tax paid of 38.40 cents.
Oklahoma's gasoline tax is equivalent to that of Texas, however, the state imposes a 4.5% sales tax, a factor that consumers should take into account when evaluating costs between the two regions.
The state tax amount is 19 cents, with a total tax paid of 37.40 cents.
Arizona imposes a gasoline tax of 19 cents per gallon, while diesel fuel is subject to a higher tax rate of up to 26 cents per gallon for certain heavy-duty vehicles.
The state tax rate is 18.88 cents, resulting in a total tax payment of 37.28 cents.
The state boasts one of the lowest gasoline tax rates in the country, with a fee of nearly 22.88 cents per gallon for diesel users, who pay a higher rate than those who use gasoline.
The total state tax rate is 18.5 cents, resulting in a total tax payment of 36.90 cents.
Hawaii's high cost of living is offset by a relatively low state tax on gasoline, but additional local fees can vary the amount drivers pay depending on their location within the state.
The total state tax amount is 9 cents, with the overall tax paid coming in at 27.40 cents.
Alaska holds the top spot in the nation for the lowest state tax burden, thanks in part to its minimal fuel tax of 9 cents per gallon. This results in a combined state and federal tax rate significantly lower than in other states. Notably, Alaska does not impose a general state sales tax, although certain local jurisdictions may impose their own taxes.
Michigan has revised its tax structure for gas stations, eliminating the 6% sales tax and implementing a fixed tax of 52.4 cents per gallon instead.
Utah has implemented a temporary reduction in its gas tax, lowering the rate from 37.9 cents to 31.9 cents per gallon, effective from July 1 and set to remain in place through the end of 2026.
Several states, including Georgia, Indiana, and Ohio, implemented emergency measures to reduce fuel consumption in response to rising fuel prices.
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